URGENT!!! – Elimination of the Mortgage Interest & Property Tax Deduction

TO: MNAR Brokers and Office Managers

RE: Member Call to Action

The Elimination of the Mortgage Interest Deduction and Property Tax deduction are still limping through the House and moving toward a final vote either Friday or Saturday.At this point we are lobbying House members and telling them why this is a bad idea.At the same time, the House DFL Caucus is lining up votes and indicating that eliminating the Mortgage Interest and Property Tax Deduction will only hurt the rich.In testimony yesterday, they stated that Minnesota can no longer afford giving deductions to multi million dollar mortgages – yet they eliminate it for all taxpayers and replace it with a credit.There is no credit for the property tax deduction.The budget numbers show the plan will save over $500 million on MID and $400 million on the property tax deduction over the biennium (2010/11).When they talk “rich” they mean taxpayers with incomes over $86,673 which is the top 20% in Minnesota.The $900 million plus is being redistributed away from homeowners to fill the budget shortfall.

We have called and sent press releases to the 4 major TV stations, 3 radio and both newspapers.None of the Editorial Boards is touching the story or even running the editorial comment.

Of more concern, we have sent out 3 written pieces, including 2 which included a pre-written letter the member could simply send to their elected official within 15 seconds.So far we have generated only 2,473 responses from our 20,000 membership base.This compared to 12,000 in 2006 when we sent one out on the Deed Tax.We need your assistance in motivating REALTORS® to act quickly on this matter.

Please find a copy of the legislative roster at

We need REALTORS® to call legislators and tell them to against the Elimination of the Mortgage Interest and Property Tax Deductions.”There is no further message or debate that needs to occur.We have additional information on our web site, including links to the bill summary if members are interested. REALTORS® should be contacting their clients as well and letting them know what is happening and how they can help stop this legislation.They could be very strong allies in this battle and many stand to lose the most.

We need REALTORS® to take a stand on this issue and we hope you will let your members know how much we need their support.

http://www.house.leg.state.mn.us/hinfo/leginfo/elecdir08.pdf. We are focusing on the HOUSE of REPRESENTATIVES, especially DFL Legislators.We need 21 DFL members to vote against including the elimination of Mortgage Interest and Property Tax Deduction in the House Tax Bill. This is not a partisan issue ; this is where the votes to pass the bill will need to come from.The House Republicans have been supporting our position, but they do not have enough votes to defeat the measure without having 21 DFL members cross over.

WEEKLY REPORT

Weekly Market Activity Report

There’s no April Foolin’ this time of year regarding the Twin Cities housing market. We’re able to report several encouraging signs this week as the market seems to be “Def” to any signs of slowdown.

For the week ending March 28, pending sales continue to reflect strong growth, increasing 28.2 percent over last year. Our oversupply continues to draw down, with new listings declining by 12.2 percent for the same time period comparison. The total number of houses for sale is 26,131, a decline of 16.2 percent from this time in 2008.

Days on Market Until Sale continues its downward trend, dropping 9 percent over last year to 150 days. Percent of Original List Price Received at Sale is definitely not Bringin’ on the Heartbreak as we’re showing our first upward year-over-year move in (a rock of) ages, increasing by 0.6 percent this month. Our Supply-Demand Ratio fell to 5.57, which means there are 5.57 houses for sale for each buyer in April, down 23.5 percent from last year.

With mortgage rates at historic lows and the $8,000 federal tax credit for first-time home buyers, it’s not surprising to see some arena rock level of hysteria in our local marketplace. We’re certainly excited; thus the untucking of our dress shirt this week. It’s been a long time since we’ve been able to pour some sugar on you.

Click the logo below or click here for this week’s full report. Visit Market Info for more research reports.

WEEKLY REPORT

Weekly Market Activity Report There’s no April Foolin’ this time of year regarding the Twin Cities housing market. We’re able to report several encouraging signs this week as the market seems to be “Def” to any signs of slowdown. For the week ending March 28, pending sales continue to reflect strong growth, increasing 28.2 percent over last year. Our oversupply continues to draw down, with new listings declining by 12.2 percent for the same time period comparison. The total number of houses for sale is 26,131, a decline of 16.2 percent from this time in 2008. Days on Market Until Sale continues its downward trend, dropping 9 percent over last year to 150 days. Percent of Original List Price Received at Sale is definitely not Bringin’ on the Heartbreak as we’re showing our first upward year-over-year move in (a rock of) ages, increasing by 0.6 percent this month. Our Supply-Demand Ratio fell to 5.57, which means there are 5.57 houses for sale for each buyer in April, down 23.5 percent from last year. With mortgage rates at historic lows and the $8,000 federal tax credit for first-time home buyers, it’s not surprising to see some arena rock level of hysteria in our local marketplace. We’re certainly excited; thus the untucking of our dress shirt this week. It’s been a long time since we’ve been able to pour some sugar on you. Click the logo below or click here for this week’s full report. Visit Market Info for more research reports.

WEEKLY REPORT

Weekly Market Activity Report

With mortgage rates plunging downward in recent weeks in response to actions taken by the Federal Reserve, home buying activity remains strong.

For the week ending March 21, pending sales in the Twin Cities were 13.0 percent higher than the same week last year, while the number of new listings on the market was basically flat. Over the last three months, there have been approximately 1,200 more signed purchase agreements than there were a year ago and 3,000 fewer new listings. During this time, 58.1 percent of pending sales have been lender-mediated foreclosures and short sales, while 37.1 percent of new listings have been lender-mediated. The fact that the share of lender-mediated sales easily exceeds the share of new lender-mediated listings is a hopeful sign.

New buyers entering this market will be met with strong affordability but will have less to choose from compared to previous years. There are currently 26,064 homes for sale in the metro area, which is down 15.7 percent and 4,840 units from this time in 2008.

Click the logo below or click here for this week’s full report. Visit Market Info for more research reports.